Global gas spending is up 13%* over 2019 peak, reflecting rebound in ground travel
As people prepare to reemerge, sales have increased at barber and beauty shops, bike stores, and toupee and wigs shops, among other categories
PURCHASE, N.Y.--(BUSINESS WIRE)-- After flights were largely grounded and travelers stayed home in 2020, the return to travel has become one of the most anticipated—and uncertain—activities of 2021. Today, Mastercard released Recovery Insights: Ready for Takeoff?, a view into key travel trends in the air and on the ground, around the world. While the global travel recovery remains uneven, one-fifth of countries studied have returned to at least 90% of pre-pandemic levels for domestic flight bookings.
The report, developed by the Mastercard Economics Institute, draws on aggregated and anonymized sales activity across the global Mastercard network to better understand the next phase for travel, its drivers and challenges. This includes the balance between leisure and business, local and long-distance, and saving and spending. The report also looks at the spending categories seeing an uptick and what they signal for travel recovery.
“While there's been an impressive recovery in domestic air travel in a number of markets, the rebound won’t happen overnight. The pandemic brought the industry down to spending levels not seen in over 15 years,” said Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute. “While a lot of uncertainty remains, pent-up savings, a desire to venture farther from home, and the green light from governments could all provide significant tailwinds for the continued travel recovery.”
Key trends include:
“The past year has only reinforced how important travel is—to our connection with friends, family and the broader world, to our business communities, and to our personal fulfillment,” said Raj Seshadri, president of data and services, Mastercard. “The economic implications of tourism are vast, with virtually no industry untouched when travelers stay home. Through Recovery Insights, we’ve helped airlines redesign travel routes, retailers rejig inventory, and cities understand shifts in neighborhood spending. It’s about enabling smarter decisions for better outcomes—today and tomorrow."
Mastercard launched Recovery Insights to help businesses and governments better manage the economic risks presented by Covid-19. Through this initiative, Mastercard has provided data-driven insights, analytics and other services to businesses and governments to help them understand ever-changing consumer spending trends and how to address them.
For instance, early last year, a leading Asia-Pacific airline leveraged Mastercard Test & Learn to understand what was driving performance during the pandemic. It was discovered that trip duration greater than seven days grew by nearly two-thirds, and tickets bought months in advance grew by roughly half. Building on these insights, the airline was able to instantly adjust their strategy in real-time to optimize their sales and better serve travelers.
Mastercard provides peace of mind to our cardholders ensuring ease, simplicity and value as they travel. For select cardholders:
*Gasoline figures are not price adjusted
© 2021 This presentation and content are intended solely as a research tool for informational purposes and not as investment advice or recommendations for any particular action or investment and should not be relied upon, in whole or in part, as the basis for decision-making or investment purposes. This content is not guaranteed as to accuracy and is provided on an "as is" basis to users, who review and use this information at their own risk. This content, including estimated economic forecasts, simulations or scenarios from the Mastercard Economics Institute, do not in any way reflect expectations for (or actual) Mastercard operational or financial performance.
About Mastercard (NYSE:MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
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Source: Mastercard Investor Relations